Mark Hoimyr harvested his first and last organic crop last year.
The Gladmar, Sask., farmer said he won’t be doing more business in that market after losing an estimated $16,000 on a contract with a Gravelbourg, Sask., processor.
“I wasn’t completely sold on the organic thing to start with and that tipped the scales pretty good.”
Hoimyr contracted 875 bushels of organic lentils with a company operated by Cy Ross, but hasn’t been paid and thinks his chances of getting any money are “slim to none.
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“He hasn’t returned phone calls, faxes, anything. I think he plans on trying to forget me.”
The company Hoimyr dealt with is Havz Lentil Processing, which has strong ties to Proven Organics, a Gravelbourg processor that the province says is in deep financial trouble.
Havz Lentil Processing and Proven Organics are registered business names owned by two separate numbered companies. Ross is listed as the sole director of both those numbered companies.
The Canadian Imperial Bank of Commerce and Crown Investments Corp. of Saskatchewan have pulled loans they made to Proven Organics.
“Obviously the business has experienced some difficulty and we’re trying to collect on our loan to them,” said Zach Douglas, senior vice-president of investments with CIC, an agency that lent Proven Organics $300,000.
He is expecting a proposal from Ross regarding a possible “restructuring or settlement.”
Proven Organics is also in trouble with OCPP/Pro-Cert Canada Inc., which has removed its organic certification status.
Ross was contacted for this story but had no comment.
According to the Saskatchewan Organic Processor Directory, Proven Organics handles whole and split peas, as well as a variety of lentils, rye, flax and hulled barley.
Willowbunch, Sask., farmer Jasmine Deblois is another producer who delivered crop to the Gravelbourg processor and hasn’t been paid.
Last November, Deblois and her husband were contacted by the processor to do business on organic peas. The couple signed a contract and Ross picked up between 950 and 975 bu. of their 2002 crop.
The contract stipulated they would be paid within 35-45 days. The outer limit of that time frame expired on Dec. 23.
Deblois estimates they are owed $9,000 for their organic peas.
“He has never really given us any explanation as to why we haven’t received payment,” said Deblois, who has repeatedly tried to contact Ross, but found the company’s voice mail is full.
Hoimyr, Deblois and other farmers who are owed money are considering legal action against Ross and Proven Organics, but they wonder if there are any assets to go after.
Canadian Grain Commission spokesperson Paul Graham said the Gravelbourg processor is not licensed and bonded, so farmers who delivered crop there are not protected.
“While it’s not always a guarantee of complete compensation, you are farther ahead dealing with a licensed company,” said Graham.
Many farmers lost thousands of dollars when Naber Seed & Grain Co. Ltd. went out of business last year, but there was at least some compensation for them – a little over 50 cents on the dollar, said Graham.
There is news on that front as well. The receiver for Naber said a proposed deal to sell the plant to an Alberta company called WESC Enterprises Ltd. has fallen through.
“The plant is going to be back up for sale,” said Rob McMahon.
